Summary
Trump has threatened BRICS nations with 100% tariffs if they attempt to replace the US dollar as the global reserve currency, calling them “seemingly hostile countries.”
BRICS, which includes major economies like China, India, and Russia, has been discussing an alternative reserve currency, especially after Western sanctions on Russia.
The power of the US dollar in the world has strengthened recently. It remains the world’s primary reserve currency and there is a huge worldwide reliance on it.
The BRICS are already trading without dollars. They might price things in USD, but the actual trades don’t use USD.
But is he really gonna tariff 55% of the global population?
The world economy will just adjust to operate without the USA. It will be painful and take a few years, but it will also be irreversible.
To be frank, we don’t need a global reserve currency in this digital age. Businesses and consumers can cheaply trade any currency pairs with minimal costs.
The dollar’s status is a leftover from the past.